Aisha Shoaib Influencing Factors and Role of Emotions in Luxury Consumption

A study of Millennials’ attitudes, beliefs and value perception

of luxury goods and services

Helsinki Metropolia University of Applied Sciences

International Degree Programme

European Management

Bachelor’s Thesis

17 June 2016

Abstract

Author(s) Title Number of Pages Date

Aisha Shoaib Influencing Factors and Role of Emotions in LuxuryConsumption

A study of Millenials’ attitudes, beliefs and value perception

of luxury goods and services

53 pages + 4 appendices 17 June 2016

Degree International Degree Programme

Degree Programme European Management

Specialisation option Marketing

Instructor(s)

Kevin McIntire, Senior Lecturer

The objective of the thesis is to examine the role of emotions, attitudes and influencing factors

leading to luxury consumption. The target group chosen for the thesis study are the Millennials who

were born in 1978-2000.

The research is implemented through an Internet-mediated questionnaire with multiple-choice and

open-ended questions. The open-ended questions allowed the 53 respondents to express a variety

of opinions freely, which was useful for the research.

The research results of the questionnaire suggest that some consumers have ambivalent feelings

regarding to the emotional state before, during or after purchase. Many consumers expressed

mixed feelings of both happiness and regret.

The research results revealed that expensiveness and high quality were positively related to the

high price set by luxury brands.

The author‟s hypothesis statement on the most influencing factors is income level and consumer

emotions/want. Furthermore, when respondents were given the option of multiple choices in de-

termining influencing factors leading to purchase, majority of the respondents believed those fac-

tors to be emotions and wants. In addition when respondents were asked to select specifically

one factor that influenced them the most to purchase luxury goods, majority of the respondents

selected income level.

Keywords Luxury, respondents, emotions, value, perception

Contents

1 Introduction 1

1.1 Objective of the research 2

1.2 Definition of Millennials 3

2 Luxury 4

2.1 Definition of luxury products 4

2.2 History of luxury 5

2.3 Characteristics of luxury products 6

2.4 Difference between products and brands 9

2.5 Level of luxury 11

3 Dimensions of value perception 15

3.1 Financial dimension 16

3.2 Functional dimension 18

3.3 Individual dimension 20

3.4 Social dimension 22

4 Theoretical basis 23

4.1 Dubois’s, Laurent’s and Czellar’s research (1994) analysis 23

4.2 Dubois’s, Laurent’s and Czellar’s research (2001) analysis 24

5 Implementation of the research 28

5.1 The research Process 29

5.2 Background information 29

5.3 Target group 30

5.4 Hypothesis 31

5.5 Research Methodology 32

6 Results and discussion 32

7 Conclusion and future recommendations 45

Bibliography 47

Appendices

Appendix 1. Research questionnaire

Appendix 2. Respondent profiles in Dubois’s, Laurent’s and Czellar’s research (2001)

Appendix 3 : Luxury fashion brands index (Okonkwo 2007, 45-47)

Appendix 4: Additional luxury consumption research response examples

Figures

Figure 1. Example of luxury goods in 19th century 6

Figure 2. Luxury pyramid by luxury level (Heine 2011, 51) 12

Figure 3. Rambourg‟s luxury power ranking pyramid (Willett 2015) 14

Figure 4. Luxury value perceptions 16

Figure 5. Author‟s own construction of different stages of the research process 29

Figure 6. Deductive reasoning 32

Figure 7. Definition of luxury by respondents 33

Figure 8. Respondent‟s definition of luxury 34

Figure 9. A few of the respondents‟ answers 36

Figure 10. Luxury Need/want 39

Figure 11. Influencing factors leading to purchase 40

Figure 12. Most influencing factors of luxury 41

Figure 13. Must have factors for luxury product 43

Tables

Table 1. Characteristics of luxury 7

Table 2. Comparison chart between a product and a brand 11

Table 3. Gender of respondents for the research 30

Table 4. Respondents‟ ages 31

Table 5. Current employment status of respondents 31

Table 6. Response percentage 37

Table 7. Gender and age comparison with need or want luxury product 39

Table 8. Luxury product logo responses 42

Table 9. Most favorite luxury brands 44

1

1 Introduction

The luxury market is growing and constantly attracting a larger number of consumers

into purchasing luxury goods. The overall number of luxury consumers has increased

from 140 million globally to more than 350 million in the past 15 years (Levy, O. 2015).

Luxury goods are being showed off and shared in various social media websites in ad-

dition with online advertising of these products. Thus luxury products have quite a

strong social presence and in some ways nowadays have become a necessity for many

individuals.

Democratization of luxury has been one of the greatest changes in the luxury sector

during the past decade. Democratization of luxury has lowered the barrier of entry and

granted access to a larger group of consumers. Moreover nearly all luxury brands offer

products that start from low price points such as socks and other accessories. Nowa-

days it is common for luxury brands to have product ranges extend from from $20

socks to $20,000 couture pieces. Hence, selling products as entry-level luxury brands

as well as elite- level brands is a challenge some luxury brands are facing today

(Okonkwo 2007).

The luxury industry possesses the power to take advantage of some exceptional rules

that work for luxury brands. These rules are exceptional since they are in contradiction

to some basic economic and marketing theories, such as in the case of luxury goods it

is suggested to increase prices annually in order to increase demand (Kapferer and

Bastien 2009).

Theories of Dubois and Kapferer & Bastien were identified among the first to recognize

the importance of international luxury products and brands in academic literature.

Two important studies by Dubois, Laurent and Czellar particularly relevant to thesis will

be analysed. The first study analysed will be Dubois‟s, Laurent‟s and Czellar‟s (1994), a

research on exploring the meanings attached to the word "luxury". The second study

analysed is Dubois‟s, Laurent‟s and Czellar‟s research explaining the concept of luxury

and attitudes of consumers towards luxury products.

2

The idea of luxury products is linked to aristocrats, European kings and Chinese em-

perors and nobles, who were the only ones to afford luxury goods made by the best

craftsmen.

Okonkwo (2007) suggests that luxury and fashion have been relevant as far back as

the Babylonian, Egyptian and Roman Empires, when fashion was identified as a key

social element reflected through clothing, cosmetics and accessories. Apparel and life-

styles were important and luxury and fashion was recognized in the society.

In the eighteenth century shopping developed into a significant cultural activity. Im-

provements in the transport and manufacturing technologies further increased the ac-

tivities of buying and selling. With the rapid growth of towns and cities, shopping be-

came an important part of everyday life.

The nineteenth century is particularly known as an important period in creating the

luxury goods sector. Today known as some of the most prestigious and valuable

brands; Guerlain (1828), Louis Vuitton (1854), Hermès (1837) were born in the nine-

teenth century along with Burberry (1856). Later on in the 20th century more brands

such as Gucci (1921) and Prada (1913) evolved.

(See Appendix 3: Luxury fashion brands index)

1.1 Objective of the research

The objective of the thesis is to examine the role of emotions, attitudes and influencing

factors leading to luxury consumption. The target group chosen for the thesis study

are the Millennials. The specification of the Millennials varies from one source to an-

other, However the author has decided to use the definition given by O'Donnel & Yar-

row (2009), who defined the Millennials being those born between 1978-2000, the

youngest respondent being 16 years of age and the oldest respondent being 38 years

of age.

Millennials have been a popular consumer group to be researched in many sectors.

Moreover O'Donnel and Yarrow (2009) stated that the Millennials are revolutionizing

the retail and whatever works with the Millennials will increasingly work with all gener-

ations.

3

The objective is to find out the most influencing factors that drive the observed group

to purchasing luxury goods in addition with understanding the emotional state and role

of emotions that is leading them to purchasing luxury goods.

The research questionnaire will help understand the most common influences that lead

to luxury consumption. Furthermore the author is interested in analysing the divergent

reasons besides the generic motives that lead to purchasing of luxury goods.

1.2 Definition of Millennials

(1956, p. 21) stated that “age and differences of age are among the most basic

and crucial aspects of human life and determinants of human destiny.”

The target research group in this thesis are the Millennials. The specific delineation of

the Millennials varies from one source to another however, the author has decided to

use the definition given by O'Donnel & Yarrow (2009), who defined the Millennials

being those who are born in the years 1978-2000. The author has chosen this particu-

lar delineation since the scope of ages of those born in 1978-2000 is a good fit with

the research.

Millennials refer to people mostly in their 20‟s and 30‟s who have become a popular

research target since they are known for their influences on their own purchasing be-

haviour as well as on those around them (Kueh & Voon 2007, 660 ; O'Donnel & Yarrow

2009, 1).

Lee Caraher (2014) states that Millennials are known as the first digitally native gener-

ation, having technology touching virtually every aspect of their lives while growing up.

Their knowledge and interest of the marketplace and love of technology have made

them a force to be reckoned with. Nowadays standards are even higher since along

with rest of the nation, Millennials considers their purchases, loyalties and search for

collaboration and partnership with brands and retailers more carefully (O'Donnel &

Yarrow 2009, 2).

4

2 Luxury

2.1 Definition of luxury products

“Luxury is a necessity that begins where necessity ends.”

Coco Chanel, 1883–1971

Having a universal definition for “luxury” is complicated, since luxury means different

things to different people. The difference between luxury and ordinary is either very

small or enormously large. Chevalier and Mazzalovo (2012, 1) state that “Luxury of one

is not necessarily that of another”. Most importantly any normal good can become lux-

ury in a certain situation. The definition and value of luxury might change depending

on context.

Heine (2011, 41) summarizes the definition of luxury products as compared to other

products of their category. Luxury products have more than necessary and ordinary

characteristics including their high level of price, quality, aesthetics, rarity, extraordi-

nariness and symbolic meaning.

Kapferer and Bastien (2012) define luxury as: “Luxury designates objects or services

which are needlessly expensive: non necessary–one can live without it–no functional

argument can ever justify their price, only the feeling of privilege made of rare quality,

hedonistic experience, symbolic elevation and conspicuousness”.

In economic terms a luxury good can be defined as a good for which demand increas-

es when income increases. The increase in income results in a bigger percentage of

increase in demand for luxury goods. Therefore Income Elasticity of Demand (YED) is

greater than one. Thus in economic terms luxury goods can be perceived as for exam-

ple the ones with the highest price and quality in the market. Furthermore McKinsey

(1990) defines luxury brands as those whose price and quality ratios are the

highest in the market and their price is significantly greater than the price of prod-

ucts with similar tangible features.

5

2.2 History of luxury

Luxury has been among us for a long time. As far back to the Babylonian, Egyptian,

Greek and Roman Empires, fashion was known to be a key social element reflecting

the society through clothing, cosmetics and accessories (Okonkwo 2007). Furthermore

this analysis clarifies that apparel and lifestyles were essential and luxury and fashion

was recognized in the society.

” Luxury is so deeply rooted in human nature that you have to look for its origins a

long way back in our history – indulge in a little bit of anthropology, in fact” (Kapferer

and Bastien 2009, 6).

Kapferer and Bastien (2009) state that far back in history, organized societies and

leading groups had symbols and lifestyles specific to them. Therefore certain leading

groups used certain accessories and clothing in order to signal their place in the socie-

ty.

”The rise of consumerism” an article by Matthew White suggests that in the eighteenth

century shopping grew into an important cultural activity (White, M 2014). Improve-

ments in the transport and manufacturing technologies increased opportunities for

buying and selling. With a fast growth of towns and cities, shopping became an essen-

tial part of everyday life. Window shopping along with the purchase of goods devel-

oped into a cultural activity in its own right. Many exclusive shops were established in

the elegant districts in the Strand and Piccadilly in London and in spa towns like Bath

and Harrogate. An example is shown below in figure 1.

6

Figure 1. Example of luxury goods in 19th century

”There can be no luxury brand without roots, without a history...” (Kapferer and Bas-

tien 2012, 93). The nineteenth century was an important period in creating the luxury

goods sector. Today known as some of the most prestigious and valuable brands, Lou-

is Vuitton (1854) and Hermès (1837) were born in the nineteenth century along with

Burberry (1856). (See appendix 3: luxury fashion brands index)

2.3 Characteristics of luxury products

Luxury products have certain characteristics that set them apart from other products in

the market.

Determination of characteristics of luxury products may vary from one source to an-

other. In order to define characteristics of luxury products the author is using a study

carried out by Heine (2012). This particular study is relevant in defining characteristics

of luxury products in this thesis since the characteristics are determined from a con-

7

sumers‟ perspective and the study in this thesis investigates consumer perceptions

towards luxury products as well.

Heine (2012) suggests that according to the results attained from his research con-

sumers perceptions of luxury products can be divided into six main characteristics that

are, price, quality, aesthetics, rarity, extraordinariness and symbolism. The characteris-

tics can be subcategorised which might not be necessary for all luxury products as

shown below in table 1.

Table 1. Characteristics of luxury

The figure shows the major characteristics of luxury which can be subcategorised to

manufacturing characteristics, concrete product characteristics and abstract product

characteristics. Concrete characteristics represent physical product attributes and can

be observed directly.

Analysis of Heine‟s (2012) study and results through the six main characteristics of

luxury products (consumer‟s point of view):

8

Price:

Price is regarded as the most objective and the easiest –to-measure criteria to evaluate

the luxuriousness of a product. Moreover price was mentioned by all of the respond-

ents in characterizing luxury products. Price proves to be extremely important to some

of the respondent who enjoy owning luxury products that look expensive, one of the

respondent commented that “There‟s no way I‟d drive a Porsche – this car is just for

people who cannot afford something else”.

Quality:

Superior quality was associated as a characteristic of luxury product by all respondents.

Quality was subcategorized to manufacturing characteristics, concrete characteristics

and abstract characteristics.

Expertise of manufacturer: respondents believe that the manufacturers of luxury prod-

ucts being talented and creative and leading experts in their area of excellence.

Manufacturing complexity: Often refers to the fact that products are not being mass

produced, thus manufacturing requires tremendous effort. One of the respondents

commented that: “manufacturing one of the excellent Lange & Söhne wristwatches

often takes one and a half years”.

Aesthetics:

Nearly all of the respondents find aesthetics as an obvious characteristic that luxury

products should have. Moreover aesthetics was mentioned by the respondents most

frequently compared to the other characteristics. One of the respondents described her

visit to the Gucci boutique in Miami as “sex for the eyes”. Another respondent high-

lighted the importance of aesthetics by stating that: “The well-designed object is es-

sential in life to feel well”.

9

Rarity:

Rarity is another characteristic that luxury consumers appreciate in an item. One of the

respondents described that ““I was the only one with this bag – and that adds a great

additional value”. Another respondent expressed that “I have already had this bag for

a year and now everyone is walking around with one – so I‟m going to get rid of it

soon”. Hence, it can be understood that consumers seek for rarity in luxury products

and seeing the same luxury item carried by too many people may decrease the value

of the item.

Extraordinariness:

This was another feature mentioned by most of the respondents. The extraordinariness

of a luxury refers to design and construction. In order for a luxury product to be ex-

traordinary, it must have a different design or construction principle. One of the re-

spondents described her new blouse as “seems to be army-style from a distance, but

from close-up it appears to be covered in small trees”.

The respondents explained their expectations of wanting something peculiar from a

luxury product for instance captured in a detail of the product such as special buttons

on a shirt or a unique position of the button border etc.

Symbolism:

Symbolism is a non-functional, however important aspects expected from luxury prod-

ucts. One of the respondents described that symbolism in particular products “have a

lot to say – they talk to you”.

2.4 Difference between products and brands

It is important to understand the difference between products and brands, since luxury

sectors tend to offer brands instead of products.

10

Joseph (2015) explains the difference between a product and a brand by stating that

“products” perform functions and “brands” offer an emotion.

Products tend to have very minor differentiations for instance given any category, ma-

jority of the products have used the same ingredients and the performed functions are

similar to other products in the particular market sector. Hence, products offer ingredi-

ents, functions and fulfil customer‟s needs.

Brands are different from products in the sense that they do fulfil customers‟ needs in

addition to satisfying customers‟ wants. Joseph (2015) states that consumers do not

fall in love with products, they fall in love with brands. Hence, brands are those which

fulfil customers‟ wants.

A comparison chart between product and brand is shown below in table 2.

11

Table 2. Comparison chart between a product and a brand

2.5 Level of luxury

One of the major means of differentiation for luxury products and brands is the luxury

level (Esteve and Hieu-Dess 2005). According to Heine (2011), luxury brands can be

categorised into four different groups: entry-level, medium-level, top-level, and elite-

level as shown in figure 2 below.

12

Figure 2. Luxury pyramid by luxury level (Heine 2011, 51)

Entry-level luxury brands: These brands are not generally even recog-

nized as members of the luxury segment since these are ranked just

above the premium segment which is the lowest luxury level. Repre-

sentative brands include Hugo Boss and Mercedes.

Medium-level luxury brands: These brands are extensively recognized as

members of the luxury segment, however they are slightly behind the

forefront of luxury. Examples include Dolce &Gabbana, Escada and Mos-

chino.

Top-level luxury brands: These brands are without a doubt established

as leading luxury brands. Examples involve Armani, Cartier and Louis

Vuitton.

13

Elite-level luxury brands: These brands are niche brands in the top seg-

ment. These brands are determinates for benchmarking the best quality

and highest exclusivities within their category. Examples involve Puifor-

cat which is a luxury brand belonging to the elite-level within the silver-

ware segment (Marguier 2007, p. 42). These brands target the “cli-

entèle de connoisseurs,” who possess the necessary financial resources

in addition with a “culture intellectuelle” (Lombard 1989, p. 16).

Categorization of luxury brands changes over time. Brands are ranked in comparison to

other luxury brands according to the relativity of luxury (Heine 2011).

Democratization of luxury has been one of the greatest changes in the luxury sector

during the past decade. The democratization of luxury has lowered the barrier of entry

and granted access to a larger group of consumers. Meaning, mass premium brands

such as Zara and Primark offer replica luxury products for example clothes and acces-

sories, at lower costs. Furthermore, nearly all luxury brands now have products start-

ing at low price points. Many brands such as Armani have extended their product port-

folios to include lower-priced ranges (Okonkwo 2007).

Democratization of luxury has affected changes in rankings due to wide variations in

prices of some luxury brands. For example nowadays some luxury brands ranked in the

entry-level brands may as well be ranked in the elite-level brands, due to huge varia-

tions between the lowest costing products to the highest ranging couture piece

(Okonkvo 2007).

Rambourg‟s pyramid of luxury goods (Willett 2015) presents categorization of brands

according to their luxuriousness in addition to price ranges. Furthermore the pyramid

shows how major brands range in terms of accessibility from everyday luxuries such as

Starbucks to ultra-high-end luxury for example Graff diamonds.

14

Figure 3. Rambourg‟s luxury power ranking pyramid (Willett 2015)

The Rambourg‟s pyramid presented above is divided into six ranges: Everyday luxury,

affordable luxury, accessible luxury, premium core, super-premium and the ultra-high

end.

The everyday luxury and affordable luxury range of Rambourg‟s pyramid can be per-

ceived as Heine‟s (2011, represented earlier above) entry-level brands. Furthermore,

(Rambourg‟s) accessible core and premium core can be observed as (Heine‟s) medium-

level brands. Additionally (Rambourg‟s) super-premium can be seen as (Heine‟s) top-

level brands range. Furthermore (Rambourg‟s) ultra-high end range can be perceived

as (Heine‟s) elite-level brands.

Having reviewed various ranges of luxury and approximate price ranges of particular

brands, the author‟s presumption is that the thesis scope will be established around

15

Rambourg‟s accessible core and premium core and Heine‟s medium level brands. In

addition with Rambourg‟s super-premium and Heine‟s top-level brands.

Rambourg‟s superpremium and ultra-high-end and Heine‟s elite-level brands ranges

are relatively high priced to be perceived in the given market. Furthermore Rambourg‟s

everyday luxury and affordable luxury and Heine‟s entry-level brands have relatively

low prices to be perceived in the given market.

3 Dimensions of value perception

It is important to understand the meaning of luxury for consumers‟ and the reason

behind consumers‟ luxury consumption. Additionally, how consumers‟ luxury value per-

ception influences their luxury consumption.

Values can be generally understood as ones beliefs that direct to desired behaviour

(Schultz and Zelenzy 1999). Moreover, individuals consumption values are determi-

nants of explaining why consumers decide to avoid or purchase certain products

(Sheth et al. 1991), customers‟ purchase choices are influenced by various types of

values (Wiedmann, Hennigs, Siebels 2007).

Individuals‟ motives and value perceptions towards luxury consumption are not just

linked to social factors of showing off status and desire of impressing other people.

In order to gain an integrated understanding of consumers‟ luxury value perceptions,

the author is using the four dimensions of value perceptions: the financial, functional,

individual and social dimensions defined by Wiedmann, Hennings and Siebels (2007).

16

Figure 4. Luxury value perceptions

Each dimension has antecedent constructs most of which were also implemented in

the research questionnaire carried out in this thesis. The four dimensions and their

antecedent constructs are explained below.

3.1 Financial dimension

The financial dimension is regarding directly to the monetary characteristics , for ex-

ample price, resale cost, discount, and investment.

Price Value:

Price is one of the main characteristics in defining luxury products (Dubois, Laurent

and Czellar, 2005). Regarding luxury goods, the price of an item can hold a positive

effect in defining the observation of high quality (Erickson and Johansson 1995).

17

Moreover, individuals obsessed with status tend to use the price of a product as an

indication of prestige (Berkowitz et al. 1992; Groth and McDaniel 1993).

Luxury goods present an exception to the law of demand, since in the case of luxury

goods an increase in the price does not necessarily refer to a decrease in demand

(McGee 2004). Supporting this statement as an exception to luxury brands it is sug-

gested to increase prices on a yearly basis in order to increase demand (Kapferer and

Bastien 2009). Furthermore, the marketing strategy prestige pricing is common in the

luxury industry. Placing a higher price in order to propose higher quality value and/or

higher status (McCarthy and Perreault 1987). Furthermore this can make particular

goods or services more attractive (Groth and McDaniel 1993).

Nevertheless, Wiedmann, Hennigs and Siebels (2007) stated that it is important to

understand that in order to be recognized as a luxury product or service it is not nec-

essary for a product or service to be expensive. Moreover, Wiedmann, Hennigs and

Siebels (2007) point out that specific items for example wedding ring or ancestral heir-

loom may be regarded as luxury goods due to sentimental value rather than a high

price tag. Therefore a product or service does not become luxurious only because of its

high price. Further backing this statement Kapferer & Bastien (2009) pointed out that it

is a common error to assume that in order to turn any product into luxury product all

that is needed is to increase the price. Jacoby and Olson (1977) states that consumers

tend to and are able to separate the difference between the actual price of a product

and the perceived which is judged by the customer. Thus when defining luxury prod-

ucts, price is only one of the main characteristics.

Heine (2012) explains that products that are expensive cannot be necessarily qualified

as luxury products, although price is a crucial component in confirming the strategic

positioning, luxury goods prices should be based on the imaginary not on the costs.

Moreover price/quality ratio or premium prices are the highest in luxury products.

However higher relative prices matter more. Price is a contributor on the luxury status

and enhances exclusivity. Therefore luxury brands tend to offer only a small number of

discounts (J. Hoffmann, I. Coste-Manière 2012).

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3.2 Functional dimension

The functional dimension is addressing to the products core advantages and basic use-

fulness. The functional dimensions focus on product features such as usability value,

quality value and uniqueness.

Usability Value:

Consumers expect the purchased product to function correctly, have an attractive ap-

pearance, be long-lasting, and perform as anticipated and promised (Fennel 1978).

The usability value is connected to the efficiency and certain functions of a product.

Furthermore, products and services are designed to perform particular functions and

the core benefit can be met through the usability of a product or service in order to

achieve the goal of satisfying consumer needs (Wiedmann, Hennigs and Siebels 2007).

Park (1986) stated Usability as a concept that has been studied and understood as

ease of use and can be explained by the physical, concrete, technical or abstract prod-

uct or service dimensions.

Furthermore consumer needs and a particular product‟s properties are both the basis

of the usability value, in addition usability value may be judged on the basis of objec-

tive or subjective factors depending on individual assessment and certain purpose of

use (Wiedmann, Hennigs and Siebels 2007).

Quality Value:

Quality is one of the main facets in characterizing luxury products Dubois, Laurent and

Czellar (2005).

Gentry et al. (2001) states that one of the major reasons of consumers luxury con-

sumption is the extremely high quality portrayed by the luxury brand name.

Dubois and Laurent (1996) and Vigneron, and Johnson (2004) described the quality

value in the content of luxury usually regards the fact that products are often hand-

19

made instead of being mass-produced, therefore, luxury brands offer outstanding qual-

ity and performance in comparison with non-luxury brands in the market.

Heine (2012) emphasized that quality is an extremely important factor linked with

luxury products. The aim of most luxury brands is to create long lasting high quality

products, which will not get ruined even after a long period of use and rather be

mended and desirably gained increased value over time and consumers would be able

to hand them on to their grandchildren. Furthermore, Aaker (1991) suggests that con-

sumers associate luxury goods with high brand quality and reassurance in order to

perceive more value from the products.

Uniqueness Value:

Verhallen and Robben (1994) states higher level of uniqueness perceived gives a brand

increased value.

The uniqueness value is relative to the presumption that the perceived exclusivity and

uniqueness of a limited product increases the consumer‟s desire for a brand.

Furthermore, Vigneron and Johnson (2004) suggest that it is possible to meet consum-

er‟s desires of differentiation and exclusivity only when consumption and usage of cer-

tain brands is granted solely to an exclusive clientele.

Therefore, for example democratization in the luxury sector is such a huge challenge

for luxury brands that desire to offer some of their products with low price points. Fur-

thermore, backing the argument: Heine (2011) describes that luxury image and rarity

is reduced when sales volumes are increased, consequently the numbers of sales is

reduced as well. Meaning increase in amounts of products sold may risk future suc-

cesses of the product.

Wiedmann, Hennigs and Siebels (2007), suggest that luxury products and services are

not meant to be affordable and purchasable for everyone to possess since else they

would not be referred as luxury goods.

20

Wiedmann, Hennigs and Siebels et al (2007), suggests that although the overall luxu-

ry brand levels can be perceived equally, it is expected that various sets of consumers

perceive the core dimensions of luxury differently across cultures. Hence, the effect of

each factor and core dimension regarding the overall luxury value perception can differ

depending on culture.

3.3 Individual dimension

This dimension addresses personal issues, for example materialism, hedonism, and

self-identity based on an individual‟s personal tendency in relation to luxury consump-

tion.

Self-Identity value:

Self-identity is concerned with one‟s internal (private) facet, it refers to the manner of

an individual‟s perception of oneself (Mehta 1999; Sirgy and Johar 1999; Jamal and

Goode 2003).

Puntoni (2001) stated that in regard of luxury brands self-congruity has a significant

impact on luxury consumption. Furthermore, luxury items can be used by consumers to

combine the symbolic significance to their own identity (Holt 1995; Vigneron and John-

son 2004). Luxury brands may be used to support or build up one‟s personal identity

(Douglas and Isherwood 1979; Hirshman 1988; Dittmar 1994).

Self-identity is concerned with the internal aspect of oneself and the way individual‟s

perceive themselves (Mehta 1999; Sirgy and Johar 1999; Jamal and Goode 2003).

Regarding luxury goods, Puntoni (2001) stated that self-congruity has a strong effect

on luxury consumption. Furthermore, individuals tend to use luxury products to com-

bine the symbolic importance to their personal identity (Holt 1995; Vigneron and

Johnson 2004) or luxury brands may be used as boosters to develop their personal

identities (Douglas and Isherwood 1979; Hirshman 1988; Dittmar 1994).

21

Hedonic Value:

Particular products and services hold a sentimental value and provide intrinsic enjoy-

ment along with their operational benefits (Hirschman and Holbrook 1982). Further-

more researches regarding luxury consumption have presented that luxury products

tend to offer personal intangible benefits (Dubois and Laurent 1994).

Heine (2012, 61) summarizes symbolism as the brand standing for “the best from the

best for the best” and its charisma filling the room, regardless of either conspicuous or

understated nature, deep inside, it is swollen with pride.

Sweeney and Soutar‟s (2001) consumer value model recognized emotional value to

play an important role in determining consumer value. Emotional value was defined as

“the utility derived from the feelings or affective states that a product generates”

(Sweeney and Soutar‟s 2001 p. 211). Thus, explaining feelings of enjoyment resulted

through products or services, emotional value can be viewed as the hedonic ad-

vantages individuals chase from a consumption experience.

Hirschman and Holbrook (1982) explained hedonism relative to the purchasing behav-

iours of consumers as “those facets of consumer behaviour that relate to the multi-

sensory, fantasy and emotive aspects of one‟s experiences with products” (Hirschman

and Holbrook 1982 p.92).

Moreover, the emotional reactions towards luxury consumption such as sensory pleas-

ure, aesthetic beauty, excitement or gratification have been repeatedly identified

through research regarding the concept of luxury (Benarrosh-Dahan 1991; Fauchois

and Krieg 1991; Roux and Floch 1996; Vigneron and Johnson 2004).

Voss, Spangenberg, and Grohmann (2003), defined hedonic consumption as caused

from “sensations derived from functions performed by products”. Thus, hedonism ex-

plains the observed personal utility and properties that are essentially attractive and

gained by purchasing and consuming luxury goods or services to arouse affective

states and feelings obtained from personal rewards and fulfilment (Sheth et al. 1991).

22

Materialistic Value:

Defining materialistic values with a single definition is complicated, since there are var-

ious perspectives materialism can be analysed from.

Wiedmann, Hennigs and Siebels (2007) stated that materialism can be explained

through the amount of importance material possessions have in one‟s life, the more

materialistic an individual is the more probable it is for him to acquire possessions and

give priority to material possessions and relate positive attitudes to acquisition.

Individuals that are highly materialistic may see possessions as desirable properties

and are more likely to dedicate time and effort to activities related to products (Belk

1985).

Furthermore consumers targeting materialistic possessions depend strongly on external

cues, preferring possessions that are consumed in publicly (Richins and Dawson 1992;

O„Cass and Muller 1999). Moreover, this may be linked with understanding materialis-

tic individuals by whom possessions are used as a means of communication to others

in order to characterize and manage impressions of oneself, and inform ones status to

others (Douglas and Isherwood 1979; Belk 1985).

3.4 Social dimension

Social dimension indicates points such as conspicuousness and prestige. Moreover the

social dimension emphasises on the perceived benefits that consumers attain from

products or services that are recognized in particular social groups.

Conspicuousness value: Publicly consumed goods are more likely to be conspicuous luxury goods than goods

consumed privately, furthermore conspicuous consumption has a major effect in for-

mulating preferences for various goods purchased or consumed publicly (Braun and

Wicklund 1989; Vigneron and Johnson 2004). Hence, luxury brands are more likely to

be essential to people seeking for a particular social status and ranking of certain

23

brands in a society is an important aspect in conspicuous consumption (Wiedmann,

Hennigs and Siebels 2007).

Prestige value: Wiedmann, Hennigs and Siebels (2007) stated that goods usually involve social refer-

encing and prestigious values and setting up one‟s self appearance as underlying fac-

tors of luxury consumption. Furthermore individuals desire to own luxury brands serves

as an indicator of wanting to belong to certain groups. For example individuals may

use prestigious brands during the week days in order to uphold their professional posi-

tion, and use modest brands on the weekends to keep up with social standards within

their community ( Wiedmann, Hennigs and Siebels 2007).

4 Theoretical basis

4.1 Dubois’s, Laurent’s and Czellar’s research (1994) analysis:

Dubois‟s, Laurent‟s and Czellar‟s (1994) research was on exploring the meanings at-

tached to the word "luxury", by using a two-step survey methodology.

Initially, a professional psychologist carried out in-depth interviews with sixteen (16)

consumers selected from various fields of occupations. Selection of both males and

females was equally represented in the panel and the age variation was seven- teen

(17) to seventy. All interviews were taped and carried out face-to-face at home. A bat-

tery of attitudinal items was developed on the basis of the results obtained from the

qualitative research and regulated to a sample of 440 French consumers.

Through the results obtained from the qualitative research, many relevant themes

emerged in relation to the concept of luxury. Initially, the word “luxury” itself is spon-

taneously associated with other terms for instance (in decreasing order of frequency)

"upscale", "quality", "good taste", "class", but also "flashiness" and "bad taste".

Moreover, both good taste and bad taste are associated with luxury, in some cases by

the same people which indicates that some respondents had mixed feelings and con-

tradictory opinions on the matter. In addition for many respondents, the luxury prod-

24

ucts are desirable at a day dreaming level. Whenever a purchase of a specific luxury

product is considered, guilt feeling arises however, that feeling is transgressed into

running away from the daily routines for at least a temporary period of time.

The results suggested that the concept of luxury encapsulates symbolic and cultural

values. Furthermore upscale products are naturally linked with material goods. Many

respondents referred to abstract concepts during the interviews, for example space,

time or freedom in order to explain their perceptions of luxury.

Many respondents felt that the concept of luxury was relative and idiosyncratic. Fur-

thermore during the interviews, many respondents explained “their” luxury, as if they

were referring to a secret garden, only familiar to them. Moreover the mixed feelings

and contradicting opinions may be due to the dual nature of luxury: a word in “itself”

and a word for “me”. Therefore, it can be understood that plenty of negative feelings

are associated with “others” luxury, while positive feelings are kept for “my” luxury.

The overall results obtained from the qualitative research suggest ambivalent nature of

respondents feelings. However majority of the respondents consider the concept of

luxury being directly affiliate with “good taste”, is “pleasant”, “not old-fashioned” and

“useful”, additionally, “flashy” and “too expensive for that what it is.” Most of the re-

spondents had positive attitudes when commenting on their personal rapport to luxury.

4.2 Dubois’s, Laurent’s and Czellar’s research (2001) analysis:

Another consumer based explanatory study was carried out by Dubois, Laurent and

Czellar in 2001 in order to analyse the concept of luxury and attitudes of the consum-

ers towards luxury products. Sixteen respondents were interviewed by a professional

interviewer. Of the sixteen respondents, 10 were female and 6 were male, all aged

between 17- 70. One product at least had been acquired by all the respondents that

they found luxurious. Luxury product definition varied from one respondent to another.

Respondents were asked to remember their last purchase and the occasion.

Respondents were also asked to describe what they thought about luxury and what

they ideas they associated with luxury.

25

Based on the views and comments of the respondents of Dubois’s, Laurent’s and Czel-

lar’s research, six facets emerged which would help defining the domain of the con-

tent. The facets are presented below.

Excellent quality:

Luxury and quality were high associated mentally by many respondents and for some

respondents luxury and quality could be used as synonyms [According to one of the

respondents of Dubois‟s, Laurent‟s and Czellar‟s research (respondent 7)].

Quality of a product can be easy judged when the consumers are buying those prod-

ucts/services frequently based on their personal experiences. However, for luxury

products, since they are not purchased frequently and some of them might be bought

only once e.g. engagement rings. The study indicates that for the judgment of such

luxury products/services, the respondents used two main factors. The first was to find

a component or ingredient that was special and used in the elaboration process of the

luxury product. The second was to perceive expertise and delicacy in the manufactur-

ing process of the luxury product/service. The respondents believe that luxury products

are thought to be manufactured by paying attention to details and require a certain

craftsmanship which encourages perfection of the product. One of the respondent

replied:

If I can afford it and whenever I have a chance, I try to buy quality clothes, you have

to admit that all of the top fashion designers are always using the best quality fabrics…

So of course if you feel like having really beautiful things, you turn to them because they always have marvelous fabrics, perfectly cut, faultless, no problem … (Respondent

2)

It is clear from the respondent‟s views that luxury products are expected to be more

reliable and durable as they are of high quality. However, a luxury product that does

not meet the expectation level, are immediately disqualified and is considered as

cheap.

26

Very high price

High price is also associated very frequently when talking about luxury prod-

ucts/services. Many respondents believed that a very high price has a logical associa-

tion with the excellent quality of luxury product/services. As one of the respondents

said:

Quality doesn‟t always mean a lot of money, but it‟s true that they often go togeth-

er,...(Respondent7)

Those who can afford to buy a luxury product, the very high price is justified for them

as they know that they will be paying for a high quality product and that brings them a

feeling of comfort and security. On the other hand, those who cannot afford to buy

luxury products, very high prices are considered as a barrier and for them the very

high prices are not justified even when the quality is there.

Scarcity and uniqueness

Another closely associated factor with luxury besides quality and high prices is scarcity.

Given the very special skills and components used for manufacturing a luxury product,

the respondents believed that the luxury products cannot be mass-produced. Many

consumers expect luxury products to have limited addition. Beyond buying access to

luxury products, luxury shops provide the consumer with a feeling of refinement and

wellbeing. Those who can afford to purchase a custom made good, describe their ex-

perience as wonderful and gives them a feeling of uniqueness.

Aesthetics and Polysensuality

Luxury products are considered as a piece of art and they are to be recognized as

such. Strong aesthetic appeal is also involved when defining a luxury product. It is not

restricted to the luxury product itself but also expected from the people who consume

these luxury products and how they are presented.

27

Most consumers described their consumption of a luxury product sensual. Luxury

products are not only expected to look good but are also expected pleasant to touch,

feel, hear or taste. One respondent said:

I often buy clothes depending on how they feel on my skin … (Respondent 6).

Luxury enhances one‟s self –concept and can give the consumer the feeling of being

powerful, strong, beautiful and free the frustrations of the world. However, it requires

knowledge and experience.

Ancestral heritage and personal history

Luxury products or services should have a story to tell. They should have a history and

their elaboration process should be able to respect tradition.

As the time goes by, luxury antiques acquire more and more value and the owners

cherish more their valuable possessions. The feeling is further enhanced when the

owners believe that to appreciate the luxury is a process intertwined with personal

history instead of acquiring a luxury product in a snapshot. When consumers buy a

luxury product, they expect that it will be in their possession for a long time and may

be also pass them to the future generation. If carefully maintained, luxury symbols can

become forever living symbols showing human creativity and intelligence.

Superfluousness

Superflousness is also a word used sometimes to describe luxury meaning products

that are not important for living. Due to this reason, many consumers and researches

oppose luxuries and necessities (Berry 1994, Kemp 1998). In order for a product or

service to be regarded as luxury, the product should enhance not the functional value

but the additional benefit of a different nature. According to one respondent:

Luxury items, meaning jewelry, pictures, books…are things you buy for the pleasure

they give you, things that you don‟t need… (Respondent 14)…

28

Different people can have a different meaning for superfluosness of which one can be

over abundance. Overabundance of something can give the consumer a feeling or

freedom, freedom to do as he like, freedom to behave as he pleases. When such free-

dom is applied to purchase, such freedom provides the consumer with a fear free, right

to variety seeking buying behaviour.

The main objective for carrying out the study was to understand what luxury meant for

different people. What are the most common factors that come to mind that can be

associated with luxury. The study sheds light on how important these factors are for

the consumers and what they expect from their luxury products when they make the

purchase.

The study gives us insight information about how consumers relate themselves to luxu-

ry and the feelings behind the process, from planning to buy a luxury product to pass-

ing it on to their next generations.

5 Implementation of the research

The research was carried out by qualitative and quantitative data gathered through an

internet-mediated questionnaire with multiple-choice and open-ended questions. The

open-ended questions allowed the respondents to express a variety of opinions freely,

was useful during data analysis. Additionally the questionnaire involved a section of an

empirical investigation regarding factors of influences which helped in understanding

and identifying the determining factors.

The exploratory research done through the questionnaire mainly helped to gain an

understanding of attitudes and emotions of Millennials towards luxury goods. In addi-

tion it revealed value perceptions of consumers towards luxury products.

29

5.1 The research Process

The research process starts with some theoretical information which is used to form

some kind of hypothesis. Then different methodologies are used to carry out the re-

search and upon analysing the received data, some conclusion is drawn at the final

stage. The stages are as shown below in figure 5.

Figure 5. Author‟s own construction of different stages of the research process

5.2 Background information

Before any research it is crucial to identify the main questions that must be answered.

Thus, incorporate those into the research questionnaire.

The questionnaire was named “Luxury Consumption”. The questionnaire was created

using Google Forms and was distributed to the respondents using both social media

[Facebook] and social contacts [through email, phone]. The questionnaire started with

a section of basic background information requirements: age, gender and status. The

30

ages were divided accordingly to the target research group: Millennials. Definition of

Millennials in this research was adopted by O'Donnel & Yarrow (2009),who defined

Millennials being those born between 1978-2000. Therefore the scope of ages provided

in the research was the youngest respondent being 16 and the oldest respondent be-

ing 38.

The author aimed to receive answers to three different matters through the research.

The three main matters are mentioned below:

1. Role of emotion in luxury consumption

2. Consumers‟ Value perceptions towards luxury and luxury products and/or ser-

vices

3. Influencing factors leading to luxury consumption and the most influencing fac-

tor leading to luxury consumption.

Furthermore the literature review carried out in the thesis was closely concentrated to

the topics mentioned above.

5.3 Target group

The aim was to receive responses from a minimum of 50 respondents, ideally approx-

imately 50% being females and around 50% being male.

The questionnaire was answered by 53 respondents of which 64% were females and

the remaining 36% were males.

Gender

Gender Percentage

Female 64%

Male 36%

Table 3. Gender of respondents for the research

31

Age of respondents

Table 4. Respondents‟ ages

Current employment status

Table 5. Current employment status of respondents

5.4 Hypothesis

The author‟s hypothesis is that role of emotions plays an essential role in desires and

“wants” rather than “needs” of purchasing luxury products. Moreover, level of income

is a strong influencing factors leading towards luxury consumption of the target group:

Millennials. The author believes the most important perceived values and characteris-

tics that these consumers expect from a luxury product are high quality, uniqueness

32

and symbolism. However, the author is keen to find out more detailed and varying

influencing factors of purchase.

5.5 Research Methodology

Initially a pragmatic approach was selected. Pragmatic approach also refers to using

and having the freedom to use mixed methods, techniques and procedures associated

with either qualitative or quantitative data.

The pragmatic approach was selected in case of not receiving enough responses and

having to change the research method of “questionnaire” to for example personal in-

terviews or focus groups in order to receive the answers. However, once the targeted

50 responses were likely to be achieved, the deductive reasoning approach was adopt-

ed. The deductive reasoning approach refers to a “top-down” approach.

Figure 6. Deductive reasoning

Firstly a theory about a topic is narrowed down, and specific hypothesis is implement-

ed, furthermore the hypothesis is tested and finally observations are collected to con-

firm test the hypothesis and with specific data and original theories. Moreover deduc-

tive reasoning can be explained as “reasoning from the general to the particular” (Pe-

lissier, 2008, p.3).

6 Results and discussion

Question 1: What does luxury mean to you?

Defining “luxury” is complicated as mentioned in section 2.1. Therefore, this question

was an open-ended question with plenty of space given for one to define the meaning

of luxury to them. This question was intended to find out what “luxury” meant to the

33

respondents. The representation below shows words most frequently used to describe

luxury. It can be seen how distinct the expressions are from one another such as “ex-

pensive” “freedom” and “unique”. A few of the phrases used by respondents are

shown below in figure 7.

Figure 7. Definition of luxury by respondents

Moreover, the following expressions and adjectives were mentioned frequently by re-

spondents to describe what luxury meant to them. Nearly all of the respondents asso-

ciated expensiveness when defining the meaning of luxury, however mostly the expen-

siveness was referred to the meaning of luxury in a positive way. Positive feelings such

as “good feel” were mentioned by the majority of the respondents.

34

Figure 8. Respondent‟s definition of luxury

Further responses to of “What does luxury mean to you? involved:

Some respondents referred to luxury in terms of feelings and experiences, while other

described the meaning of luxury to them as desirable products they wish to possess.

Moreover “expensiveness” and “quality” were mentioned most frequently by all re-

spondents.

Uniqueness and “rarity” and was another attribute described by some respondents,

Male/21-29/part-time working student: “Something that is comfortable, rare ,

looks good and durable.”

Some of the respondents described the meaning of luxury as an experience or feeling,

possibly gained or wanted from particular services:

Furthermore, “Expensiveness” and “high quality” are linked in definitions of the mean-

ing of luxury. Many respondents were referred luxury to travel and vacation, further

understood as one‟s leisure time.

35

Female/21-29/student: “If material: expensive things, if real luxury for my own

wellbeing: awesome experiences, amazing use of time”

Question 2: Do you prefer to buy luxury products/services over non-luxury

products/services? why/why not? Mention some examples.

This was another open-ended question with plenty of space provided for the respond-

ents to answer. The aim of this question was to find out if respondents preferred buy-

ing luxury products and services over non-luxury goods and services. Moreover the

question aimed to gain possibly opinions and comparisons between luxury and non-

luxury goods.

Majority of the respondents [about 70%] preferred luxury products and services over

non-luxury goods and service. The most common reason addressed to preferring luxu-

ry goods over non-luxury goods was “quality”, “durability” and “rarity/uniqueness”.

However, many agreed to prefer some items such as leather handbag or jacket in lux-

ury goods and items such as an umbrella to be a non-luxury purchase. Some respond-

ents expressed that in they do not prefer purchasing luxury goods and services over

non-luxury goods since they feel like luxury goods/services are overpriced and not

worth the money. Furthermore they expressed liking simple and ordinary products. In

this section many respondents expressed the frequencies of their purchases on some

level, for example mentioning that they like to purchase luxury goods/services “occa-

sionally” for example on “birthdays” or “special occasions”.

Many respondents stated that buying luxury goods over non-luxury goods make them

feel special and good about themselves, for example:

Male/21-29/working: “Yes because they last longer , they have better quality and

they make me feel good about myself”

Some of the respondents explained their feelings when using the purchased luxury

product, which clearly indicates an emotional value attached to the product and brand,

for example:

36

Female/21-29/part-time working student: “Yes, because when I buy luxury

products I feel happy every time I am using them. For example carrying a designer

handbag or wearing good quality materials gives me pleasure.”

Figure 9. A few of the respondent‟s answers

Question 3: How do you feel when purchasing luxury goods? (What/Why? Hap-

py, Satisfied, Regret etc)

Many respondents [around 77%] associated positive feelings regarding their purchase

of luxury goods;

Male/21-29/student “Satisfied, proud, confident”

37

There were a number of respondents who has mixed feelings of happiness and sad-

ness, for example:

Some of the respondents admitted feeling guilty while the purchase and explained that

later on positive feelings were established:

Female/21-29/part-time working student: “Sometimes I feel guilty if I spend too much

money but usually happy.”

Majority of the respondents expressed feeling of happiness when purchasing luxury

products. Furthermore many respondents had ambivalent feelings of “regret”, “guilt” or

happiness. There were respondents who expressed feelings mostly “regret” and others

feeling “mostly happy”.

Question 4: For which of the following reasons if any, do you buy luxury

products/services?

Reasons for buying luxury prod-

ucts/services

Percentage %

Good feeling 75%

To reward myself 70%

To gain confidence 35%

To feel more attractive 30%

It makes me stand out 55%

It signals my status 15%

Other 10%

Table 6. Response percentage

This question offered the choice to select more than one reason/feeling to identify the

reason behind a luxury purchase. This aim of this question was to investigate the role

of emotions linked and involved in luxury consumption. The given options “good feel-

ing”, “to reward myself”, “to gain confidence”, ”to feel more attractive” “it makes me

38

stand out”, “it signals my status” are all feelings and emotions felt or gained possibly

before, during or after a luxury purchase.

The majority of the respondents selected “good feeling” as at least one of the reason

of luxury consumption, being 75% of respondents. Furthermore many of the respond-

ents buy luxury products or services in order to reward themselves, for example after

an achievement. The second most common reason of luxury consumption was “to re-

ward myself”, being 70% of the respondents.

Many respondents mentioned wanting to buy luxury products due to “rarity” and

“uniqueness” which is linked with the feeling of wanting to stand out, 55% of respond-

ents expressed the reason of luxury consumption being “it makes me stand out”.

Some of the respondents stated that buying luxury products and using luxury services

increases their confidence, 35% agreed with “to gain confidence” being one of the s

justifying luxury consumption. Moreover 30% respondents expressed that the reason

for luxury consumption is “to feel more attractive”.

Out of the respondents 15% stated one reason of luxury consumption being “it signals

my status” and 10% of the respondents informed the reason to be “other” than men-

tioned above or additional to the reasons mentioned above.

Question 5: When buying luxury goods/services, is your purchase decision

usually based on need or want?

39

Figure 10. Luxury Need/want

Table 7. Gender and age comparison with need or want luxury product

The objective of this question was to find out that when buying luxury products or ser-

vices is emotional basis “need” or “want”. Only one choice could be selected in this

question. The majority of 83% of respondents identified the emotion being “want”

when buying luxury products or services. The rest being 17% of respondents stated

that the emotion they feel is “need” when buying luxury products or services.

40

Question 6: Identify the influencing factors leading you to purchase ( You

may select more than one option)

Figure 11. Influencing factors leading to purchase

In this question, the respondents had the option to choose more than one option. The

aim behind this question was to understand the factors, due to which a respondent is

tempted to buy a luxury product over non luxury products.

A big number of respondents (85%) believed that the most influencing factor is the

want and the emotional feelings receive get when they purchase a luxury prod-

uct/service. Along with emotions, income level was almost as big of a factor as emo-

tions/want scoring about 80%. This means that while the respondents understood the

feelings behind purchasing a luxury product, income level would also be side by side

when they are making the purchase decision. The higher income level, the more luxury

product they can afford to buy.

Family and friends are the next influencing factors for the respondents with a percent-

age of around 40%. The next following factor was social status at about 30% and

brand loyalty and social media falling at about 20%.

41

Question 7: Which of the above/other is the most influencing factor for you

that lead to buying a luxury product/service?

The objective of this question was to detect the influencing factors leading to purchas-

ing luxury goods and/or services.

Figure 12. Most influencing factors of luxury

Majority of the respondents, 44.2 % selected “income level” to be at least one of the

influencing factors leading to purchase. The second most influencing factor is emo-

tions/wants. 30.8% of the respondents agreed with this. Moreover 9.5% selected one

of the influencing factors leading to purchase being “social status”. 7.7% of respond-

ents selected “family and friends”. Furthermore respondents added their own opinion

by commenting on the “other” category and 3.8 expressed that their “choice” is an

influencing factor furthermore 3.8% stated that “looks” is an influencing factor leading

to purchase.

Choice

42

Question 8: When you purchase a luxury product, is it important for you that

the brand name/logo is visible on the item?

Column %

Age 16-20

Age 21-29

Age 30 or more

YES

100%

56%

33%

NO

0%

44%

67%

NET

100%

100%

100%

Table 8. Luxury product logo responses

This was a question with one choice option either “yes” or “no”. The aim of this ques-

tion was to find out that do consumers who purchase luxury brands want the brand

they are wearing to be visible and recognizable by everyone around them.

Furthermore, do consumers perhaps wish to have the brand name visible for them-

selves or are they satisfied with possibly being only ones to know the value of their

product.

All respondents aged from 16-20 selected answered “yes”. Moreover 56% of respond-

ents aged from 21-29 selected “yes” and the remaining 44% respondents from this

category selected “no”. Furthermore 33% of respondents aged from 30-38 answered

”yes” and 67% selected “no”.

43

Question 9: In order for a product to be counted as a luxury product, it must

have which of the following factors? (more than one option may be select-

ed)

Figure 13. Must have factors for luxury product

Respondents had a choice to select more than one option in this question. The aim of

this question was to find out consumers value perceptions towards luxury products

furthermore which of the above or other characteristics they believe luxury products

must have.

The total amount of respondents was 53. It was observed that 40 out of 53 respond-

ents selected “High Price” as one of the characteristics a luxury product must have

resulting in 75.5%. Moreover 26 out of 53 respondents selected “Excellent Usability” as

one of the properties a luxury product must possess.

Furthermore 49 out of 53 being 92.5% respondents perceived “High Quality” as one of

the characteristics a luxury product must have. Moreover 20 out of 53 respondents

being 37.7%, believed that luxury products must involve the “Emotional Value”. Addi-

tionally 24 out of 53 responses being 45.3%, suggested that luxury products must

have “Materialist Value”. Furthermore 3 out of 53 being 5.7% selected “other” which

referred to quality related attributes.

44

Question10: What is your favorite luxury brand ( you own a product of)?

The aim of this question was to investigate the “luxury level” discussed in section 2.5

to determine on which level these brands are ranked. Majority of the brands mentioned

by respondents rank in Rambourg‟s accessible and premium core and Heine‟s medium

level brands such as Louis Vuitton, Rolex and Gucci. Some of the brands such as Coach

and Geox are ranked in Rambourg‟s affordable luxury range and Heine‟s entry-level

brands.

Armani was owned by most of the male respondents whereas Michael Kors (MK) and

Donna Karan New York (DKNY) was most commonly owned among female respond-

ents.

FEMALE

MALE

DKNY(5)

Dior(3)

Guerlain(2)

Lancome

LV

Guess(2)

Longchamp

Michael Kors(5)

Burberry

Estee Lauder

Apple

Armani(2) Calvin Klein Coach

Gucci(2)

Tommy Hilfiger

Armani(6)

Boss(2)

D&G

Gucci(2)

Guess

LV

Nike(2)

Rolex

Sony Geox

Table 9. Most favourite luxury brands

Hypothesis confirmation/rejection

Having analysed the research questionnaire results, the hypothesis composed by the

author can be accepted. Before the observations and analysis of the research ques-

45

tionnaire results, the author anticipated that want and income level will be significant

factors in influencing luxury consumption, which they were, thus the hypothesis can be

accepted. Additionally the author anticipated that the most important perceived values

and characteristics that consumers expect from a luxury product are high quality,

uniqueness and symbolism. The results of the research questionnaire suggested that

the most desired characteristics for luxury products/services were high quality and

uniqueness.

7 Conclusion and future recommendations

The research results of the questionnaire suggested that some consumers had ambiva-

lent feelings regarding the emotional state before, during or after purchase. Many con-

sumers expressed feeling both happiness and regret. The research results revealed

that expensiveness and high quality were positively related to high price set by luxury

brands.

The author‟s hypothesis statement on the most influencing factors was income level

and consumers emotions/want. The research results revealed that when respondents

were given the option of multiple choices in determining influencing factors leading to

purchase, majority of the respondents believed those factors to be emotions and

wants. Moreover when respondents were asked to select specifically one factor that

influenced them the most to purchase luxury goods, majority of the respondents se-

lected income level. Furthermore social media did not result as a significant influenc-

ing factor.

The fact that the results obtained from the research were supported by the existing

theoretical findings to a high extent, gives some sort of reliability of the results ob-

tained in this thesis study. Nevertheless 53 respondents sound relatively high amount

of responses for a research of this sort and therefore are validated and can be accept-

ed to some level. However, if assumed that a marketer takes a survey of group of 53

people and decides to implement future strategies on this based data, the results are

likely to be highly erroneous due to the fact that the population size is enormous com-

pared to the sample size.

46

It was notable in the research analysis that age differences have quite high variation in

opinions. Therefore, the authors‟ recommendation for future research would be to ask

respondents to identify their exact ages.

The questionnaire involved open-ended questions which did provide substantial data.

However, the majority of respondents answered with only a couple of words. Fewer

words offer less information on the matter. As a recommendation for future research

of this sort, the author suggests arranging individual interviews or focus groups in or-

der to reveal deeper opinions and reasoning from the respondents through further

questioning and discussion within the focus group.

47

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Appendix 1

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Appendix 1: Research questionnaire

Gender: o female o male Age: o 16 – 20 o 21 – 29 o 30 or more

What is your current situation? o Student o Working o Student but part-time working o Unemployed 1) What does luxury mean to you?

________________________________________________________________________ 2) Do you prefer to buy luxury products/services over non-luxury products/services?

why/why not? Mention some examples ________________________________________________________________________

3) How do you feel when purchasing luxury goods?

________________________________________________________________________

4) For which of the following reasons if any, do you buy luxury products/services?

Good feeling To reward myself To gain confidence It makes me feel more attractive It makes me stand out of the crowd It signals my status

Others ______ 5) When buying luxury goods/services, is your purchase decision usually based on need or

want?

o Need o Want

Appendix 1

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6) Identify the influencing factors leading you to purchase( You may select more than one

option) Emotions/wants Income level Brand loyalty Social status Family and Friends Social Media Other________ 7) Which of the above/other is the most influencing factor for you that leads to buying a

luxury product/service?

8) When you purchase a luxury product, is it important for you that the brand name/logo is

visible on the item? o Yes o No

9) In order for a product to be counted as a luxury product, it must have which of the fol-

lowing factors? (more than one option may be selected) High price Excellent usability High quality Emotional value Materialistic value Other:__________

10) What is your favorite luxury brand( you own a product of)?

Appendix 2

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Appendix 2: Respondent profiles in Dubois’s, Laurent’s and Czellar’s research

(2001)

(1) Female, 46 years, project study manager in a metal construction company, married

to a CPA, two children

(2) Male, 50 years, administrative director of an exclusive men's club, married to an

engineer, two children

(3) Male, 63, years, restaurant owner and merchant, married to a factory manager,

three children

(4) Female, 70 years, wife of a high-level civil servant, two children

(5) Female, 53 years, civil servant at the Ministry of Culture

(6) Female, 29 years, music teacher, lives with a professor of economics, one child

(7) Female, 26 years, primary school teacher, unemployed, spent a great part of her

life in different countries due to the profession of her father

(8) Male and female, around 55 years, public relations manager in an industrial com-

pany, wife works at home, no child

(9) Female, 17 years, graduating year of high school, both parents are senior manag-

ers

(10) Male, 53 years, well-known foreign journalist, divorced, two children, has lived in

Paris for four years

(11) Female, 25 years, architecture student; male, 27 years, advertising manager, son

of a Parisian banker, two children

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(12) Male, 49 years, computer scientist, married to a foreign language teacher, two

children 46

(13) Male, 45 years, typewriter repairer and office furniture seller, married to a middle-

level executive, two children

(14) Female, 39 years, bookseller specializing in ancient books, lives with a jewel de-

signer, no child.

Appendix 3

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Appendix 3 : Luxury fashion brands index (Okonkwo 2007, 45-47)

Appendix 3

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Appendix 3

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Appendix 4

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Appendix 4: Additional luxury consumption research response examples

Question 1: What does luxury mean to you?

Uniqueness and “rarity” and was another attribute described by some respondents,

Male/21-29/part-time working student: “Something that is comfortable, rare , looks

good and durable.”

Some of the respondents described the meaning of luxury as an experience or feeling,

possibly gained or wanted from particular services:

Male/21-29/student: “relaxing, enjoyable, a service/product that provides freedom from

the daily life worries”

For some respondents the meaning of luxury referred to, the feeling of comfort, one’s

image socially, and particularly good looks:

Male/21-29/working: “Comfort, popularity and good looking”

Majority of the respondents referred the meaning of luxury being “extravagant” “above

the average” etc and of excellent quality:

Male/30-38/student: “something exclusive and of high quality”

Furthermore, “Expensiveness” and “high quality” are linked in definitions of the mean-

ing of luxury. Many respondents were referred luxury to travel and vacation, further

understood as one’s leisure time.

Female/21-29/student: “If material: expensive things, if real luxury for my own wellbe-

ing: awesome experiences, amazing use of time”

Some respondents identified both tangible products and experiences as luxury to them:

Female/21-29/working: “Good quality products, fine dining and clean well-furnished

hotels and beach resorts. “

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Quite many of the respondents experience the feeling of luxury while dining in a “good”

or high class restaurant:

Female/21-29/working: “Products that are unique and stand out. For me luxury can

mean to stay in a 5 star hotel and going to a good restaurant.”

Almost all of the respondents included products and service’s particularly with high

price, for example :

Female/30-38/ working: “Travelling first class, staying at an expensive hotel and de-

signer clothes.”

Question 2: Do you prefer to buy luxury products/services over non-luxury prod-

ucts/services?

Many respondents stated that buying luxury goods over non-luxury goods make them

feel special and good about themselves, for example:

Male/21-29/working: “Yes because they last longer , they have better quality and they

make me feel good about myself”

Male/21-29/part-time working student: “No. The prices are too high otherwise would

happily buy.”

Male/21-29/working: “Yes because they have better quality and they last longer”

Some of the respondents informed they like to purchase important things from luxury

brands, for example:

Female/21-29/working:” Depends on the purchase, sometimes when I need a nice

item for heavy use I buy a luxury product for the quality and looks. Sometimes I don't

care so much and buy non-luxury items as well, especially if I am not ready to put

much money into it or it is not so important to me.”

Some of the respondents explained their feelings when using the purchased luxury

product, which clearly indicates an emotional value attached to the product and brand,

for example:

Appendix 4

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Female/21-29/part-time working student: “Yes, because when I buy luxury products I

feel happy every time I am using them. For example carrying a designer handbag or

wearing good quality materials gives me pleasure.”

Many respondents stated that they like to buy luxury goods to reward themselves for

an achievement etc. Moreover luxury goods are seen as precious and valuable items

that one has to deserve and earn For example:

Female/21-29/working: “Yes but usually only on special occasions, like to reward my-

self with a vacation or expensive handbag when I have achieved something or if it’s my

birthday.”

Question 3: How do you feel when purchasing luxury goods? (What/Why? Hap-

py, Satisfied, Regret etc.)

“When I purchase luxury goods occasionally, I feel like I have deserved them, it makes

me feel happy and special.”

“Very happy and satisfied and luxury products make me feel special and more confi-

dent.”

“If I buy luxury goods, I feel good but also regret that I have spent so much money.”

“I feel more attractive and happy”

“Happy mostly but of course tiny bit of regret as so much money has been spent un-

necessarily”

“I feel excited happy and sanctified with my purchase.”

“I purchase luxury goods sometimes as a reward for myself so usually I feel happy and

excited!”

“I feel really satisfied that i am treating myself with luxury products. I actually do not

regret at all, even if it destroys my budget.”

Appendix 4

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“Normally happy. If I know I cannot afford it then I feel bad.”

“Happy, if the product matches my expectation about it.”